Chip Stocks Lead Gains, Driving Nasdaq Rebound; Dow Hits 53,000 for First Time; Oil and Gold Under Pressure; Bitcoin Surges Following Trump's Statement
On Monday, U.S. stocks rallied with the tech-heavy Nasdaq leading gains, breaking a recent losing streak. The Dow Jones Industrial Average closed above the 53,000 mark for the first time. The rebound was fueled by positive news from AI infrastructure leaders: Nvidia confirmed its server roadmap remains unchanged, and Broadcom announced an extended chip partnership with Apple until 2031. However, Morgan Stanley strategist Mike Wilson warned that the semiconductor sector's trajectory resembles that of silver before a sharp correction, hinting at potential bubble risks.
In commodities, oil prices remained under pressure. WTI crude traded flat around $68-$69, while Brent fell to its lowest since late February at $71.75. This weakness followed Saudi Arabia's significant price cut for August cargoes—its largest in at least 26 years—raising concerns about oversupply as OPEC+ agreed to boost production targets starting in August.
Gold edged down 0.4% to $4,162 per ounce, pressured by a stronger dollar and hawkish-leaning signals from Federal Reserve officials.
Bitcoin reversed early losses to surge about 1.4% to $63,571 after former President Donald Trump publicly declared himself a "big believer in cryptocurrency." This statement countered selling pressure from a major firm's $216 million Bitcoin divestment.
In bond markets, the 10-year Treasury yield dipped slightly to 4.47%. The dollar index was largely flat, while USD/JPY rose 0.4% to 162.03, nearing a 40-year high and testing Japan's intervention resolve.
European equities dipped slightly, with the STOXX 600 closing down 0.35%, retreating from record highs hit after the strong U.S. jobs data.
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